BRICS: Russia is putting China in great difficulty!

The Russian economy is turning more and more towards China, in particular through the massive adoption of the yuan for its international trade. This significant dependence on the Chinese currency, a direct consequence of Russia's exclusion from the global financial system, further intrigues Beijing, which seeks to strengthen its global influence and avoid Western reprisals.

Russian economic dependence on the yuan

Since the intensification of international sanctions against Russia, the yuan has become the most traded foreign currency in the country. Moscow, excluded from Western financial systems such as SWIFT, has had no choice but to strengthen its commercial partnerships with China, causing increased dependence on the yuan. Russia has become extremely dependent on the yuan, a situation which could become dangerous for its economy if the flow of this currency were to dry up.

This dependence is accentuated by the prudence of Chinese financial institutions. Faced with Western sanctions, large Chinese banks are hesitant to engage further with Russian entities, for fear of being subject to sanctions in turn. This situation creates economic instability for Russiawhich could see one of its main financial lifelines reduced. For Russia, this growing dependence on the yuan is not without consequences, because it exposes the country to additional risks, particularly in terms of the stability of its monetary reserves and its trade balance.

Geopolitical risks for China

For its part, Beijing faces a strategic dilemma. Although Russia is an important partner especially in the BRICS alliance, China must also preserve its relations with other economic powers, particularly in Europe and North America. Supporting Moscow too openly could lead to sanctions against China, which jeopardizes its access to international markets. China is walking a tightrope. Beijing cannot afford to lose its key Western markets to excessive support for Russia.

Furthermore, the high use of the yuan in Russia is not enough to make it a dominant international currency. Despite its growing role in Russian-Chinese trade, the yuan remains poorly represented in global reserves and faces limitations linked to strict capital controls in China. The dominance of the US dollar on the world stage remains intact. If Russia continues its dependence on the yuan, China will have to decide whether it is prepared to assume the risks, both economically and diplomatically.

The implications of this situation are numerous and complex. This growing Russian dependence on the yuan exposes both countries to major economic and geopolitical risks. China, although strengthening its ties with Moscow through the BRICS group, must balance its interests to avoid compromising its relations with other international partners. In the long term, this dynamic could accelerate Chinese efforts to further internationalize the yuan, but the road remains fraught with challenges, particularly in the face of the dollar's continued dominance.